The U.S.-Iran interim peace deal has been signed, and the normalization of the Strait of Hormuz is now beginning. Tanker traffic through the critical waterway is slowly resuming, though a full return to pre-war or near-pre-war energy flows could take months.

But behind the urgency to get the memorandum of understanding deal across the finish line were two uncomfortable realities.

First, President Trump recently met with oil and gas executives, who likely informed the administration that the conflict and the shuttered Hormuz maritime chokepoint were leading to an energy cliff that would materialize by mid-summer. On Wednesday at the G7 Summit in France, Trump acknowledged the uncomfortable truth that SPRs used to offset lost Gulf energy production were being drained at an alarming rate. “We run out of reserves in about four weeks,” Trump told reporters.

Second, the physical disruption in global supply chains had begun spreading beyond energy flows and into shipping costs, threatening to transmit the Hormuz crisis into broader goods inflation.

https://www.zerohedge.com/commodities/energy-cliff-supply-chain-shock-toxic-cocktail-get-iran-deal